Fed meeting minutes: About half of the respondents expect another rate cut at the October meeting.

[Fed Meeting Minutes: About Half of Respondents Expect Another Cut at October Meeting] The Fed meeting minutes mentioned that recent expectations for the policy interest rate have declined due to weaker-than-expected employment data and significant increases in downside risks to employment. Almost all respondents surveyed about market expectations anticipate a 25 basis point reduction in the interest rate target range at this meeting, with about half of respondents expecting another cut at the October meeting. The vast majority of respondents expect at least two 25 basis point cuts by the end of the year, with about half anticipating three cuts throughout the year. Respondents' expectations for 2027 and beyond remain unchanged, suggesting that their recent expectations reflect a judgment that the federal funds rate will return to its long-term level faster than previously expected. The market-based expectations for the policy interest rate are generally consistent with the survey results, indicating that there will likely be about three 25 basis point cuts by the end of the year.